Regulatory Cooperation Under TTIP. If You Can Read This, You’re Too Close. (original) (raw)

2017, E. Czarny, A. Kuźnar, J. Menkes (eds.), The Impact of the Transatlantic Trade and Investment Partnership on International Cooperation, Peter Lang, Frankfurt am Main 2017, pp. 55-63.

One of the paradoxes of economic globalisation is that ever closer economic ties mean that any significant global agreement would fundamentally reshape the entire picture, which renders highly desired agreements difficult to reach. As a result, regionalisation of trade and investment agreements increases transaction costs business, hence the need for regulatory convergence. The easiest, and perhaps the most democratic, way would be to adopt a quasi-universal agreement, where at least all the states could voice their concerns. Although the easiest route does not appear available any soon, it does not mean that we are doomed to regulatory havoc. There are at least two alternatives: the trickle-up or the trickledown process. Tha latter could be the case of the Transatlantic Trade and Investment Partnership (TTIP), whereby the parties undertake to review and compare relevant domestic regulation and to cooperate towards development of new rules. Since, largely due to GATT/WTO achievements, tariffs constitute a negligible obstacle to international trade, regulatory cooperation means striking down the other villain that is the non-tariff barriers to trade (NTB). Sceptics fear that it is an instrument of large pan-Atlantic capital, possibly attempting to oust China (as the main challenger to the US domination) and Brazil (which questioned certain cooperation model by rejecting the ISDS). Two fundamental questions rising here, are, what if these voices are wrong, and what if they are right. As for the former, the alternative for failing to conclude the agreement is to see the Atlantic economic influence in the world wane. TTIP provides an opportunity to jump-start Atlantic economy, even though this may materialise at the cost of intra-EU and intra-NAFTA trade. If they are right, gradual loss of international status may still occur; the question is though how shall we manage the process. By adopting the TTIP Chapter on regulatory cooperation the EU and the US hope to acquire an advantage of the market standard-setter, as both negotiating parties undertake to “promote international standards”.